High Commission

India-UK Free Trade Agreement On Cards

UK’s Trade Secretary Kemi Badenoch on Monday begins her India visit with a first face-face meeting with counterpart Union Commerce Minister Piyush Goyal as the sixth round of Free Trade Agreement (FTA) negotiations kicks off between the countries.

Badenoch’s visit marks the sixth round of formal negotiations between the UK and India. The goal of strengthening bilateral ties and reviving talks on an ambitious bilateral trade deal between the two nations, according to an official statement.

Badenoch is scheduled to address both the teams of negotiators teams before the round of talks begin. The negotiations will take place throughout the week

The UK Trade Secretary will also meet with business leaders to better understand their needs for a modern UK – India trade relationship.

This will include a meeting with envoPAP, a UK company investing over 10 million pounds in India to construct a plant producing Fairtrade paper and packaging products.

The talks, the first formal round since July, will aim to reach an agreement to reduce tariffs and expand opportunities for UK services such as financial and legal, making it easier for British businesses to sell to the world’s third-largest economy – with a middle class of 250 million people – by 2050.

“I’m here in New Delhi to kickstart round six of UK-India trade negotiations and meet my counterpart Minister Goyal in person to drive progress on this agreement,” Secretary of State for International Trade Kemi Badenoch said in a statement.

“India and the UK are the 5th and 6th biggest economies in the world. We have a long shared history, and are in pole position to do a deal that will create jobs, encourage growth and boost our 29 billion pounds trading relationship,” added the minister who was appointed to her role this September.

According to the official announcement, major UK brands such as Pret A Manger, Revolut, and Tide have announced plans to expand in India.

Following a franchise deal with Reliance Brands, British coffee and sandwich retailer Pret will build its first outlet in India in early 2023. The chain’s first location will be in Mumbai, as part of a goal to open 100 locations around the country.

“Bringing Pret’s freshly made food and organic coffee to more people around the world is a key part of our transformation strategy, and I’m delighted to be launching Pret in India,” Pano Christou, CEO, of Pret A Manger said.

According to International Director of the Confederation of British Industry, Andy Burwell the UK-India Free Trade Agreement remains a high focus for the industry.

Earlier in October when Prime Minister Narendra Modi congratulated Rishi Sunak on assuming charge as UK Prime Minister, the two leaders emphasized the importance of an early conclusion of “a balanced and comprehensive” Free Trade Agreement between the two countries.

India and the UK were looking to conclude the bilateral free trade agreement (FTA) pact but missed the deadline after the resignations of former Prime Ministers Boris Johnson and Liz Truss.

On July 29, the two countries concluded the fifth round of talks for an India-UK Free Trade Agreement (FTA). (ANI)

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When BoJo Met NaMo!

There is an old proverb in Persian language: ‘Amad`an, nashist`am, ghuft`am, barkhas`tam’, they came, they sat, they talked and then dispersed. It actually means to say that nothing substantial was achieved by a visit or dialogue. The same holds true about the recent visit by British Prime Minister Boris Johnson to India, after his two previous visits scheduled last year, were cancelled due to Covid pandemic.

BoJo in India

The diplomacy nowadays, thrives on optics. On this count the BoJo visit clicked all the boxes, but was also marred by angry reactions on the social media on photos showing him in the driver’s seat at a JCB bulldozer. Perhaps his advisers were unable to connect the continuing controversy over bulldozers being used by the establishment against the minorities across India, or his close connections with the owner of the JCB, Lord Anthony Bamford, an old Conservative party donor and supporter, overweighed the local sensibilities.

The Gujarat leg of his visit, a carbon copy of his Home Secretary Priti Patel’s 2015 visit to the state, was in essence aimed at garnering the support of the Gujarati electorate back home, keeping an eye on his uncertain political future.

In Gujarat he also met with Gautam Adani at his company’s head quarters. BoJo described the feeling of being in Ahmedabad similar to as those of Sachin Tendulkar and Amitabh Bachchan, two Indian icons used for boosting his own public image and trying to resonate or connect with the Indian audiences.

In New Delhi, he referred to Prime Minister Modi as a ‘khaas dost and continuously as Narendra during his speech at Hyderabad House. But no more ‘khaas’ treatment to the Indian demands of a relaxed Visa regime and post study work for the Indian students, an indication towards which was given in Ahmedabad, but not granted finally.

Bilateral Cooperation

His main focus remained the FTA between the two countries, as he expected to take back home something substantial in economic terms, particularly after his failed Brexit strategy. He urged the negotiators on both sides to hasten the pace of negotiations so as to have a final document ready for signing by Diwali in October. Certainly an over ambitious demand for an agreement, which has been under negotiations for more than last ten years.

Though the Indian side stated that it would demonstrate the same speed and urgency that it did in concluding recent FTAs with the UAE and Australia in recent months, yet nothing can’t be said for sure about an Indo-UK FTA, as there are many thorny issues on both sides.

British trade with India, the world’s second-most populous country with nearly 1.3 billion people, was worth 23 billion pounds ($29.93 billion) in 2019, much lower than the UK’s trade with some much smaller economies such as Ireland and India’s trade with smaller countries like Belgium which stands at 18 billion pounds.

Russian-Ukraine War

In addition, though not expressed overtly by the British side and neither by BoJo, the Russia-Ukraine war had an ominous shadow over the visit. Though his foreign secretary was very firmly told by New Delhi just 22 days before his visit that India is not going to change stand on its ties with Russia, BoJo thought he might be able to convince New Delhi to do so.

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However, predicting the Indian response he had set the tone for this when even before meeting the PM Modi he had said that he understands India’s historic ties with Russia, but still chose to lecture New Delhi on its relationship with ‘autocratic’ states, though this time also New Delhi politely stood its ground.

The manner in which the visit was seen by both sides, was remarkable by the manner in which the two prime ministers delivered their speeches at Hyderabad House. While BoJo avoided mentioning Russia, Mr Modi reaffirmed the ties with Russia.

India-focussed Issues

Though the British side is referring to a host of agreements signed in different sectors, and BoJo’s statements on counter-terrorism task force being constituted and against the Indian economic fugitives currently at home in the UK, everyone is certain that they are just mere words, nothing substantial. His announcement of One billion pounds trade deals and creating 11,000 jobs is just peanuts for India.

Both sides also agreed to deepen bilateral defence and security cooperation. India welcomed Britain’s Indo-Pacific tilt and joining the Indo-Pacific Economic Initiative; on its part Britain announced the decision to ease the transfer of defence equipment and technology for India and also for developing an advanced jet fighter. But overall, nothing concrete was inked down by both the sides and the technology transfer could be viewed as just a gimmick to wean India away from Russia.

Overall, the two sides showed commitment to joint research, development and production of advanced weapons and related technologies. The two PMs also issued a statement on strengthening partnership in cyber-security domain, and plans to boost cooperation on mitigating climate change and promoting clean energy. But these agreements should be seen as just part of a normal bureaucratic visit.

The visit seems to be a hastily stitched plan, with no long-term goals and no narrative setting, and was unable to achieve anything bilaterally. In the end BoJo was unable to get anything substantial from India and his political troubles back home persists. The coming days will show how he’ll be able to deal with them and survive as even his closest Asian origin lieutenants like Rishi Sunak and Priti Pate, who were predicted to take over from him, are facing politically damaging controversies of their own.

(Asad Mirza is a political commentator based in New Delhi. He writes on issues related to Muslims, education, geopolitics and interfaith)